corporate presentation november 2019 airasia group berhad · source: google & temasek / bain,...

Strictly private and confidential1

AirAsia Group BerhadCorporate Presentation November 2019


LEGAL DISCLAIMER

Information contained in our presentation is intended solely for your personal reference and is strictly confidential. Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the Company. Neither we nor our advisors make any representation regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein.

In addition, the information contains projections and forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and which may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the Company’s assumptions are correct. Actual results may differ materially from those projected.

This presentation is strictly not to be distributed without the explicit consent of Company’s management under any circumstances.

Strictly private and confidential

Agenda

3

Achieving the unthinkable

Strengthening our underlying airline business

Digitalising the airline

AirAsia 3.0

Leveraging our data to create platforms


2 airlines6 airlines

*Fleet size and data as at 30 September 2019

272 aircrafts, in 8 airlines

159 destinationsacross 23 Markets

100 million passengers flown annually>600 million total passengers flown

24 hubs

Over 11,000 flights per week

Over 387 routes, including 107 unique routes

The largest LCC in Asia The fourth largest airline in Asia


2.96% annual conversion rate

Over 560 millionannual unique (web&app) visitors

5

Wide digital reach via AirAsia.com, mobile app and social media

Over 15 millioncontactable members

Over 40 millionmobile app download

Hits from over

240different countries

Over

12,200,000 fans

Over

8,000,000 followers

Over

26,700,000 followers

Over

2,000,000 followers

Over

1,300,000 followers

Over

2,200,000 followers

76% Sales via internet Over 53 million

total fans and followers*Data as at September 2019


3Q 2019 Key Highlights

Revenue up 18% YoY despite receiving 53% lesser operating lease income. Excluding operating lease income, revenue was up 24%.

Strong performance of AirAsia Indonesia and AirAsia Philippines with continued momentum into 4Q19

AirAsia Malaysia decided to grow domestic market share up 3 ppts to 60%● Hence, domestic average fare is down 15%. International average fare flat. 4Q2019 average fare showing 12%

improvement YoY

Strong RASK up 1% despite planned aggression on domestic market share gain and cutting out OTAs, which signifies the strong performance of ancillary revenue

CASK well under control despite heavy investment into digital

CASK +11% due to change in accounting treatment● Maintenance cost up 118% as includes RM110mil provision● Additional spend in digital investments of RM50mil

IAA and PAA CASK improved 18% and 13% despite adding more international routes and timing differences in airport incentives

AirAsia Thailand reports steady revenue growth of 5% despite seasonally weak quarter and headwinds of strong Baht and HK situation; Expecting a strong 4Q19


3Q 2019 Key Highlights (cont’d)

AirAsia India revenue grew 58% and gained domestic market share● RASK up 27%. Load factor improved 14ppts to 90%. Gained 2ppts domestic market share to 7%● CASK up 5% due to forward hiring to cater for additional aircraft and rescheduling of major maintenance schedules.

Total ancillary revenue grew 26% YoY● Duty-free sales up 39%● Seat selection up 25%● Targeted pricing and prediction have driven 25% and 20% increase in seat selection and baggage revenue by offering the

most relevant price point to drive a positive take up rate and revenue per passenger

Non-airline ancillary revenue from digital platforms grew 72% YoY● Teleport revenue of RM121 mil on track to meet FY19 target of RM400m. 3Q19 tonnage up 7% YoY while global

industry contracted 5%. Launched Teleport.Social in September 2019● BigPay GTV up 27% QoQ. Launched international money transfer to four Asean countries. ● AirAsia.com GBV of RM5.1 bil, up 20% YoY. In Nov, AirAsia.com expanded offering to include bookings of other

airlines.

Positive operating cashflow (post operating lease) of RM856mil in 9M19

Taking on the OTAs● Continuing from our success in Indonesia. Short-term pain, long-term gain.


Dividends

● 2019: special RM0.90 payable in 29 Aug 2019; 34% dividend yield

● 2018: Interim + special dividend – totaling to RM0.64 for FY2018; 21.5% dividend yield

8

Special Dividends from Monetising Our Digital/Support Assets

Ground Handling Service•Cash proceeds received in Jan 2018 SGD119.3 million

Pilot & crew training centre•Monetisation of 50% stake: Cash proceeds of USD100 million received in Mid-Nov 2017

Hotel & travel•Sold 25% stake for USD86 million in 2015•Sold remainder of 25% for USD60 million in Aug 2018

Aircraft leasing

•Sale of 79 aircraft and 14 engines concluded for USD1.085 billion in 4Q2018

•Another 25 aircraft to transact for USD768mil


Agenda

9




AirAsia 3.0



Fleet Plan

MAA TAA IAA PAA AAI AAJ Total

December 2018* 95 62 24 22 19 2 224

2019 Net Addition 2 0 4 2 9 1 18

2020 Net Addition 0 -3 3 2 7 3 12

* December 2018 fleet excludes 2 third party leases

Fleet Expansion Across AOCs in 2019 & 2020

Target aircraft financing for 2019 & 2020: All on sale and leaseback.

Note: Column chart includes 2 third party leasesFleet plan is subject to changesUpdated fleet plan as at 6 November 2019

6 countries:


Strengthening Market Share

3ppts 1ppt 1ppt 2ppts

=flat

3ppts

7ppts

2ppts

1ppt=flat

=flat

1ppt 2ppts

4ppts5ppts

AirAsia’s Domestic Market Share & Rational Competition (3Q2019 vs 3Q2018)

Source : PaxIS

Improved performance by PAA & IAA

12

AirAsia Philippines AirAsia Indonesia

● 40% revenue growth and 78% narrowed loss after tax

● Carried 33% more passengers, surpassing the 19% higher capacity. Load factor improved 9ppts to 86%

● Domestic market share was up 1 ppt to 19%

● CASK and CASK ex-fuel lowered by 13% and 1% YoY respectively.

● Adding 2 aircraft each in 2019 and 2020.

● EBITDA and PAT were positive in comparison to 3Q18’s losses

● Demand was strong with 58% increase in ASK, 66% increase in pax carried, +3ppts in load factor to 85%

● Driven by 9% increase in RASK and efficient cost control as CASK and CASK ex-fuel reduced by 18% and 21% respectively.

● We managed to strengthen our domestic presence as our market share improve by 1ppt to 3%

● Adding 4 aircraft in 2019 and 3 aircraft in 2020

3Q18 3Q19 ▲ %

Revenue (Php mil) 4,449 6,225 ▲40%EBITDA (Php mil) -1,322 995 ▲175%PAT (Php mil) -1,687 -367 ▲78%RASK (Php) 1.96 2.18 ▲11%CASK (Php) 2.58 2.24 ▼13%Pax (mil) 1.6 2.1 ▲33%Load factor 77% 86% ▲9ppts

3Q18 3Q19 ▲%

Revenue (IDR mil) 1,066,841 1,833,020 ▲72%EBITDA (IDR mil) -82,764 415,350 ▲602%PAT (IDR mil) -213,817 61,202 ▲129%RASK (IDR) 517.84 563.96 ▲9%CASK (IDR) 636.15 519.22 ▼18%Pax (mil) 1.2 2.0 ▲66%Load factor 82% 85% ▲3ppts


Agenda

13




AirAsia 3.0


Data-driven organisation

DATA USERS COE

DATA GOVERNANCE


Cabin Baggage Weight

Passengers Movement

AerobridgeMovement

Queue Time

Terminal

Online Activity

Social Data

Contact Details

Transactions

Loyalty

Demographic

Mobile Activity

Feedback

Engine & Component

TransactionsFOMAX

Maintenance

Potential new data source

Feedback

Guests

Aircraft

Available data source

Passengers Weight

CounterTransactions

Lifestyle Data

LocationTemperature

Speed

Apron

14

We have a lot of Data to drive ecosystem expansionBIG Data and Real-time Insights


Data taking us to new heights

Priorities to Focus On

Cost Reduction

Verticals to Work On Fuel Cost Operations

Efficiency

Skill SetsRequired Data Science

Goalsto Achieve

Revenue Gain

Increase Fuel Cost Efficiency

Increase Cost Efficiency & Productivity

Ancillary

Increase Uptake

Pricing / Bundling

Drive Customer Retention

Promos / Rewards

Drive More Traffic

15


Staying true to being low-cost

Our top priority, ALWAYS.

Predictive maintenance to

increase efficiency

Driving fuel usage reduction through

data analytics

New A321neo aircraftthat are fuel efficient &

have lower cost per seat

Adoption of ‘Agile’ organisation

structure

Lower airport charges

16

Media cost on a downtrend with personalisation


Agenda

17




AirAsia 3.0



Marketplace

Logistics Digital Bank & Insurance

Lifestyle & Entertainment

Travel and financial platform of Asean

AirAsia ecosystem comprises the Group’s core airline network operations, travel and lifestyle commerce platform, financial and insurance services, logistics services, as well as lifestyle &

entertainment affiliates

18

Growth in 2019 and beyond: AirAsia 3.0

AirAsia BIG Loyalty points - BIGLIFE

Data

19

Corporate structure reorganisationSetting the right pillars towards becoming a travel and financial platform company

AirAsia Group

Airlines RedBeat VenturesAirAsia.com

Country AOCs

Teleport

BigPay

Santan/T&Co

AirAsia BIG Loyalty

OURSHOP

Other non-airline investments


We are investing in people

2

Building blocks laid for a platform business

Lye Kong Wei, Chief of Data Science(Formerly from Grab)

AirAsia Software Engineering & Technology CenterBangalore, India

Elias Vafiadis, Head of Software Engineering

(Formerly from Expedia)

20

Fabrice Marie, Head of Information Security

(Formerly from Lazada)


Agenda

21




AirAsia 3.0



AirAsia.com - All-in One Travel and Lifestyle Marketplace

New enhanced homepage UX/UI on web & mobile


AirAsia.com addressable market

13Ride-hailing

14Online media

38E-commerce

35Online travel

100

41

Ride-hailing(Online food delivery, online transport)

33

Online media(Subscription music & video, online gaming, online advertising)

153 E-commerce

79Online travel(Online vacation rentals, Online hotels, online flights)

306

2019E

Asean internet economy market size (GMV, US$bn, By sector

2025E

23Source: Google & Temasek / Bain, e-Conomy SEA 2019

☑ Flights (direct & aggregator)In 2019, we estimate

we had ~10% market share of the online travel space

Before setting up AirAsia.com as a separate entity:

Now we are establishing AirAsia.com as a all-in-one travel and lifestyle marketplace

☑ Hotels

☑ Post-booking

☑ Holiday packages

☑ Transportation

☑ Activities

☑ Media

☑ Lifestyle deals

☑ OURSHOP

☑ Beauty

☑ Food delivery

☑ Community Maintaining our current ~10% market share will yield us a potential GBV of US$31bn in 2025E

☑ Insurance, fintech

THEN

OUR VISION


Loans Remittancee-Money

BigPay - Financial Supermarket

Advanced money management

Asia’s Money App● Digital challenger bank

for Southeast Asian millennials and travelers

● Democratise financial services with simple and affordable solutions for e-wallet, remittances, and lending

850k users


AirAsia Group Belly Space Consolidation/Partnerships

2 25

Jan 2019 Aug 2018

May 2018 Jul 2018 1Q 2020 1Q 2020

Feb 2019

7-8 Airlines in pipeline


Full Year 2018 : Revenue of RM206 mil.

Target for Full Year 2019 :Revenue of RM400 mil

Existing cargo supply chain is ripe for disruption:

Apr 2019

Apr 2019


Building Teleport to enable direct businesses and consumersOpening our logistics infrastructure to social sellers

2 26Note: Illustrative mockup of product

Social Commerce (C2C) is growing faster than ride-hailing in Asean

ASEAN includes – MY, PH, TH, ID, VN, SG (ASEAN6)2018-2025 Social commerce estimated at ~50% of formal e-commerce segment

Sources: Google Temasek Reports, Nomura research, Euromonitor, eCommerceiQ, news runs


Traveloka

9.9

Key to our platform strategy is our low customer acquisition cost built over the last two decades

13Ride-hailing

14Online media

38E-commerce

35Online travel

100

41

Ride-hailing(Online food delivery, online transport)

33

Online media(Subscription music & video, online gaming, online advertising)

153 E-commerce

79

Online travel(Online vacation rentals, Online hotels, online flights)

306

2019E

Asean internet economy market size (GMV, US$bn, By sector

2025E

Asean unicorns & funding in 2016-1H19 (US$bn)

Grab 14.3

1.7

1.2

Lazada, Tokopedia, Shopee, Bukalapak, etc

Active users, from 2015 to 2019

AirAsia’s annual unique (web&app) visitors:

VNG, Razer

8mn 40mn

130mn 180mn

49mn 150mn

27Source: Google & Temasek / Bain, e-Conomy SEA 2019

560mn

Go-Jek


AirAsia Valuation

228

Market Dominance

Visitors (per month)

Daily active users

Hotel nights for sales

Merchants

App Downloads

Valuation

ASEAN

65 million

~2m

>500k

40m (via Mastercard)

>40 million

US$ 1.4 bil

Indonesia/ASEAN

22.2 million

0.8mn

>100k

n/a

30 million

US$ 4.0 bil

Global

750 million

n/a

352mn

n/a

>250 million

US$ 17.3 bil

Source: Publicly available company data

ASEAN

MAU: 18.6mn

Ride-hailing: 4mn

n/a

>4k

>110mn

>US$10bn

Indonesia/ASEAN

MAU: 28 million

Ride-hailing: 1.8m

n/a

303k (300k food merchants)

>100mn

~US$10bn

THANK YOU &

APPENDIX


3Q 2019 Financial Highlights

30

● Revenue grew 18% YoY:○ 16% increase in ASK and strong load factor of 84%. PAA load factor increased 9ppts to 86%○ 1% RASK growth as RASK for IAA and PAA grew 9% and 11% respectively. Irrational competition in Malaysia and weak demand to

HK and Macau led to MAA seeing a 5% decline in RASK.

● Net operating profit down 97% YoY to RM2 million due to:○ Accounting impact from restructured aircraft ownership (from owned to leased) even though similar cash flow where:

■ MFRS137 drove maintenance and overhaul cost up 118% YoY to RM272mil■ MFRS16 resulting in depreciation of right of use asset & finance costs - lease liabilities

○ Additional digital investments of RM50mil & losses from BigPay, AirAsia.com & RBV Others of RM33mil

● Loss after tax of RM67mil was reported due to:○ RM238mil fair value loss on derivatives○ RM112mil foreign exchange loss

● Despite irrational competition in Malaysia, we continue to deliver positive operating cashflow in 9M19, annualising a 19% OCF yield.

RM

mill

ion

Robust revenue growth of 18% YoY

Revenue Net Operating Profit

Net Operating Profit down to RM2mil

Operating Cash Flow

Operating Cashflow (post operating lease) marginally down 7% YoY in 9M19


Financial & Operational Performance - Subsidiaries

31

MAA IAA PAAKey Indicators 3Q18 3Q19 % 3Q18 3Q19 % 3Q18 3Q19 %Passengers Carried 7,980,797 8,845,823 ▲ 11% 1,236,068 2,048,968 ▲ 66% 1,579,035 2,107,387 ▲ 33%

Capacity 9,669,210 10,636,026 ▲ 10% 1,502,460 2,411,640 ▲ 61% 2,058,120 2,453,940 ▲ 19%

Load Factor (%) 83 83 ⚫ - 82 85 ▲ 3ppts 77 86 ▲ 9ppts

RPK (million) 10,105 10,783 ▲ 7% 1,705 2,780 ▲ 63% 1,764 2,459 ▲ 39%

ASK (million) 12,122 12,884 ▲ 6% 2,061 3,251 ▲ 58% 2,268 2,890 ▲ 27%

Fuel consumed (Barrels) 1,894,699 2,015,943 ▲ 6% 343,127 521,263 ▲ 52% 425,835 508,273 ▲ 19%

Average Fuel Price (USD/ Barrel) 90 83 ▼ -7% 87 85 ▼ -2% 106 90 ▼ -16%

Domestic market share (%) 57 60 ▲ 3ppts 2 3 ▲ 1ppt 18 19 ▲ 1ppt

Size of fleet 90 96 ▲ 6 16 27 ▲ 11 21 24 ▲ 3

Revenue (million) RM 1,849 RM 1,896 ▲ 3% IDR 1,066,841 IDR 1,833,020 ▲ 72% PHP 4,449 PHP 6,225 ▲ 40%

RASK 14.68 sen 14.00 sen ▼ -5% IDR 517.84 IDR 563.96 ▲ 9% PHP 1.96 PHP 2.18 ▲ 11%

CASK 13.04 sen 14.63 sen ▲ 12% IDR 636.15 IDR 519.22 ▼ -18% PHP 2.58 PHP 2.24 ▼ -13%

CASK Ex-Fuel 7.27 sen 9.26 sen ▲ 27% IDR 405.41 IDR 319.61 ▼ -21% PHP 1.43 PHP 1.42 ▼ -1%

OP

ERA

TIO

NA

LFI

NA

NC

IAL


Financial & Operational Performance - Associates

32

TAA AAI AAJKey Indicators 3Q18 3Q19 % 3Q18 3Q19 % 3Q18 3Q19 %Passengers Carried 5,117,230 5,284,489 ▲ 3% 1,600,684 2,352,141 ▲ 47% 81,144 150,277 ▲ 85%

Capacity 6,336,912 6,547,152 ▲ 3% 2,100,240 2,621,520 ▲ 25% 91,620 178,932 ▲ 95%

Load Factor (%) 81 81 ⚫ - 76 90 ▲ 14ppts 89 84 ▼ 5ppts

RPK (million) 4,979 5,444 ▲ 9% 1,722 2,549 ▲ 48% 88 159 ▲ 80%

ASK (million) 6,167 6,766 ▲ 10% 2,252 2,814 ▲ 25% 100 188 ▲ 89%

Fuel consumed (Barrels) 1,131,683 1,237,829 ▲ 9% 406,911 519,413 ▲ 28% 15,839 32,763 ▲ 107%

Average Fuel Price (USD/ Barrel) 101 90 ▼ -11% 122 108 ▼ -11% 133 112 ▼ -16%

Domestic market share (%) 31 31 ⚫ - 5 7 ▲ 2ppts n/a n/a - -

Size of fleet 60 62 ▲ 2 19 22 ▲ 3 2 3 ▲ 1

Revenue (million) THB 8,945 THB 9,419 ▲ 5% INR 4,582 INR 7,242 ▲ 58% JPY 734 JPY 1,366 ▲ 86%

RASK THB 1.48 THB 1.42 ▼ -4% 203 INR cents 257 INR cents ▲ 27% JPY 7.38 JPY 7.26 ▼ -2%

CASK THB 1.59 THB 1.47 ▼ -8% 333 INR cents 350 INR cents ▲ 5% JPY 16.87 JPY 12.03 ▼ -29%

CASK Ex-Fuel THB 0.97 THB 0.98 ▲ 1% 177 INR cents 210 INR cents ▲ 18% JPY 14.51 JPY 9.94 ▼ -31%

OP

ERA

TIO

NA

LFI

NA

NC

IAL


3Q 2019 Ancillary revenue up 26%; 23% of revenueNon-airline ancillary up 72% YoY

33

3Q19 Highlights:● Total ancillary grew 26% to RM686mil, 23% of revenue● Airline ancillary grew 16% YoY ● Non-airline ancillary grew 72%● PAA ancillary grew 45%; IAA ancillary 64%● Seat selection up 25% to RM51mil● Baggage up 20% to RM286mil● Teleport up 48% to RM121mil● BigPay up 393% to RM4.2mil● Improved efficiencies and continuous optimisation of

digital marketing channels resulted in 47% YoY increase of revenue coming from digital marketing channels

● On passenger personalisation, we are piloting in November individual customised promotions based on customer types and purchasing behaviours

Non-airline revenue taking a larger portion of the pie, with it growing 72% YoY

Airline ancillary grew 16% YoY

RM518mil

RM168mill


Protecting Against Fuel Volatility

• Our Group’s fuel hedging strategy is based on our forward sales booking

• Brent – 65% hedged for FY19 at USD62.77 per barrel; 73% hedged for FY20 at USD60.22 per barrel; FY21 19% at USD59.45 bbl

AirAsia Group2019 2020

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Current Hedge Ratio (Brent) 53% 52% 70% 86% 82% 71% 69% 69%

Average Brent Hedge (Qtrly) 66.68 63.73 62.04 60.72 59.85 60.28 60.40 60.36

Note: As at 27 November 2019


Digital Platforms● 3Q19 Revenue grew more than twofold to RM7.4mil● GBV of RM5.1bil in 3Q2019, up 20% YoY● Enabled guests to prebook two meals, optimised ancillary recommendation using data science, added hotel and

activities widgets and product badges on homepage, increased inventory for activities to 12k offerings across 100+ destinations

● Launched public and flight chat rooms to drive engagement, increase user experience and upselling products● F.A.C.E.S. sign-up for members and enabled selection of passport details from the member account● In November, AirAsia.com expanded offering to include flights of other airlines, powered by Kiwi.com● Launched AirAsia Deals in November 2019● Exclusive arrangement with Expedia expiring in mid 2020

● 3Q19 Revenue grew to RM121mil in 3Q19. 9M19 revenue of RM334mil on track to reach FY19 target of RM400mil● 3Q19 tonnage up 7% YoY while global industry contracted 5%● In 3Q2019, co-invested US$10.6mil in EasyParcel for its Series B round to grow social and e-commerce across ASEAN. ● Also signed MOU with Triple i to integrate cargo capacity in Thailand for AirAsia Thailand and AirAsia X Thailand by 1

January 2020● Launched Teleport.Social in September 2019 to help individuals and SMEs sell their own products on social media

anywhere● In Nov, signed a direct interline agreement with leading air cargo provider Lufthansa Cargo

● 3Q19 Revenue grew 30% QoQ● User base increased 28% QoQ to 850k users● GTV grew 27% QoQ● Largest digital e-money issuer in Malaysia by transactional volume● In 3Q2019, successfully launched a fully digital remittance product, enabling users to send money directly from

Malaysia to bank accounts in Singapore, Thailand, Indonesia and the Philippines● Next target to launch closed beta in Singapore

airasia.com


COMMUNITYGlobal community to drive

engagement

COMMERCEBest deals for travel &

lifestyle

CONTENTCreativevisuals &stories, sharing of experience

AirAsia.com Overview

● Incorporated in 2019, AirAsia.com is a regional web and mobile app platform for travel and lifestyle bookings in Asia

● Offers consumers travel and lifestyle products that are available for purchase using various payment methods, including loyalty points

● Expanding beyond AirAsia’s airline network, AirAsia.com features global flights operated by other peer airlines and both proprietary and non-proprietary travel and lifestyle inventories for consumers to choose from

● Built travel and lifestyle ecosystem through strategic partnerships with local and regional partners working as earn and burn channels of loyalty points for consumers

Tony Fernandes (CEO)CEO of AirAsia Group

● Flight ● Hotel / Vacation

Rental ● Flight + Hotel ● Transport ● Tours + Activities● Insurance● Itinerary Builder

● Shop ● Duty Free ● F&B● Health, Fitness● Events ● Ticketing ● Services

● Media ● Content

(Print + Digital) ● Inflight

Entertainment ● Infrastructure

(Inflight WiFi)● Podcast

● Content driven beauty marketplace

● Cosmetics● Wellness● Skincare● Fragrance● Haircare

Travel Lifestyle Content Beauty

Business Summary

Products & Services

● Marketplace for comprehensive and proprietary content and inventory for other businesses to plug-in and use

B2B

36


BigPay Overview

● Launched in 2018, BigPay aim to democratize financial services in Asia by building a digital bank that offers consumers e-wallet service, remittance and lending

● Value proposition includes easy user experience, usability via Mastercard’s extensive network, issuance of Big Points upon top up or use, zero foreign exchange rate charged during international travels, and zero booking fees when booking on AirAsia.com

Christopher Davison (CEO)Former Director of Clearwater Partners

Former Investment Manager at Talis Capital Limited

Business Summary

Key Features

Proprietary Licences

e-Money LendingRemittance

● Native iOS and Android build● Latest tech stack & proprietary software● Seamless, mobile-only user experience● Bank grade and biometric security● Peer-to-peer payments & split bills● Fully automated spending analytics● In-app card / account management● Issue Mastercard / Visa card

Make financial services better value, more transparent and fairer for everyone

AirAsia Big Pointsearn with daily spend

Save Moneyon AirAsia flights

Best Exchange Ratewhen spending abroad

Instant Money Transferto your friends for free

Expense Analyticsin real time

37


Teleport Overview

● Today, a consolidator of belly capacity for the AirAsia group of airlines, enabling cargo carriage for businesses across 110+ cities

● Global network reach through partner airlines beyond Asia covering US, Europe, Middle East and Australia/New Zealand

● Our goal is to re-order the supply chain, with the airport as the distribution center of the future, and make same-day cross-border fulfillment a reality

● We intend to open our platform and infrastructure to empower consumers and small businesses across Southeast Asia

Pete Chareonwongsak (CEO)Former COO at AirAsia PhilippinesFormer Group Head of Business

Development

Business Summary

Offering Door-to-Door Cross Border Logistics Services

Last Mile DeliveryIdentify various last mile partners based on items

First Mile CollectionParcel collection in origin country (warehouse / pick

up / drop off points)

Partner WarehouseConsolidation and sorting by consignee for final delivery

at destination country

TransportationCargo terminal and

warehouse as well as cross docking for final delivery leg

Customs ClearanceOutbound and inbound

custom clearance in origin and destination countries

Affordable Air Freight

Now: AirAsia Network

Next: 8 Major Asean Cities

Aim: 4 Capital Cities


38

Jan 2019 Aug 2018

May 2018 Jul 2018 1Q 2020 1Q 2020

Feb 2019

7-8 Airlines in pipeline

Apr 2019

Apr 2019


Points Exchange● Convert your other (Citi, CIMB, Maybank) points to

Big Points on Big Exchange points marketplace

Co-Branded Cards● Earn extra Big Points when spending on the

co-branded credit cards

Products & Services● Formally known as Big Loyalty and rebranded in 2019, BigLife is

AirAsia’s frequent flyer program aiming to power AirAsia’s greater ecosystem with its loyalty points as a high utility digital currency

● Offers consumers earning opportunities when transacting with an ecosystem partner and also offers consumers the option to purchase travel and lifestyle products using the user’s point balance

● Provides additional benefits for its members such as exclusive discounts and priority access to sale inventories

● Tied to AirAsia’s single sign on to maximize value for users and create a wholistic profile of users’ behavioral patterns

BigLife Overview

Business Summary

Major Customer Value Propositions

Points Earn & Burn● Earn and use points at travel and

lifestyle partner channels

Exclusive BIG Member discounts at up to 90%

Pay with BIG Points and save more on flight bookings

24-hour priority access to AirAsia sales

Full flight redemption for free flights

Redeem short haul flights from as low as 500 BIG Points

Shop online and earn BIG Points for every cash spent

Earn and save BIG with Fave deals

Rewards differentiated by membership statuses

39

Spencer Lee (CEO)Former Head of Commercial at

AirAsia Malaysia

1. Air France KLM2. ANA Holdings Inc3. China Airlines Ltd4. LATAM Airlines Group SA5. Avianca Holdings SA6. Japan Airlines7. Alaska Air Group8. Lufthansa AG9. Delta Air Lines Inc10. AirAsia Group Berhad11. Southwest Airlines Co12. American Airlines Group Inc

*24 airlines participated

The only LCC in the Top 10

The only ASEAN airline in the Top 10

AirAsia’s first time participating in the Dow Jones Sustainability Index assessment 2019

Ranked Top 10 in the airline category*

corporate presentation november 2019 airasia group berhad · source: google & temasek / bain,...

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